The State of Real Estate (Minneapolis, Minnetonka: townhouses, established neighborhood, buying)

[yellowsnow]

Saw a yellow sign outside of Cub Foods in Monticello. Real estate auction of a home in Otsego accepting bids Saturday. Appraised value 751K. Opening bid, 378K.

Yikes!

[Jaxx99]

In my neighborhood (Lake Minnetonka area but not lakeshore), homes have been moving recently. They are having to be marketed heavily, and they are having to price them within the realm of reason (not like 2000 when you'd get a bid on basically anything). But a nice house that is priced and presented well seems to have takers.

I've seen 4 homes nearby, one which was on the market for a year, all get sold signs in the past 2-3 weeks.

Not scientific evidence, but an encouraging anecdote from one west metro community.

[midwest456]

probably less attractive to live out in the exurbs as gas goes up. I am afraid it will again, even tho we seem to have gotten a bit of a break, seeing it drop from 3.39 or so to as low as 2.79 in Minneapolis.

you folks weren't kidding about 494 rush hour. one big parking lot! glad I was able to plan on avoiding that for my commute.

[Robert P Stewart]

Yup - the northwest is a bit of a bloodbath right now. I've turned down several projects up that way.

Auctions sound dire, but they're not. Regardless of the opening bid, the owners are under no obligation to sell unless bids reach a certain point. In reality, auctions are a ploy to draw out serious buyers under the guise of immediacy. Don't be fooled - but hey, got your attention, right?

[yellowsnow]

Yup, it got my attention!

I keep hoping things will improve. I would love to see just one sold sign in my neighborhood. I'm not saying it has to be mine.....just need to see something here sell.

It also scares me to death that you are seeing properties sell for less than their property tax valuations. I always thought those were considerably less than fair market value.

I am seeing yet another Minnesota winter in my future. And how many more times will I have to write this?

[AVguy]

Agree with your assessment completely, yellowsnow. That's how things look in our neighborhood in Apple Valley (a little east of Eastview High School). Within a three-block radius, no houses have sold since last year, and at least a few have been on the market for several months. Houses are being offered for near tax assessment values, which I always thought were at least 10% below market value.

Knowing that you work in the south metro, Robert, why do you think that we aren't seeing more movement in established neighborhoods? The houses in our neighborhood have 3-4 bedrooms, are very close to 196 schools, and are generally cheaper to own than new townhouses once you factor in monthly association fees. Are younger families not moving out to the suburbs? Are people only choosing to build new townhouses instead of moving into smaller single-family houses? Just curious on your thoughts of these trends.

My wife and I aren't looking to sell anytime soon, but I simply don't understand the local market right now.

[Jaxx99]

I'm not Robert or a realtor, but there is definately a perception that buying brand new construction gives you "worry free" housing -- nothing will break. All of us homeowners know that you might get by with a couple years of no major repairs, but eventually the repair reaper comes calling to everyone.

We live in a well-maintained and updated 1940's home. We have many fewer major repairs than we did with our standard-issue subdivision home, which was only 15 years old when we bought it.

[mazzer]

Out of interest Yellowsnow would you mind sharing your MLS#?

[SlyFrog]

Originally Posted by AVguy

Agree with your assessment completely, yellowsnow. That's how things look in our neighborhood in Apple Valley (a little east of Eastview High School). Within a three-block radius, no houses have sold since last year, and at least a few have been on the market for several months. Houses are being offered for near tax assessment values, which I always thought were at least 10% below market value.

Hey. I'm looking in your area (Apple Valley in general). Well, not your area in particular, since it starts to get too far away from major routes downtown.

Also because I have no interest in paying half a million dollars (over six times the median Minnesota income for a family of four) for a 3500 sq. ft., .25 acre fungible McHouse.

[yellowsnow]

Originally Posted by mazzer

Out of interest Yellowsnow would you mind sharing your MLS#?

Here's my virtual tour thing:

Welcome to REALESTATEWITHAVOICE.COM

I think it's OK to post this because it doesn't give the price or address so I don't think the mods should see this as me trying to sell the house here.

It's a cool house with character.